Problem Statement
Traditional methods of owning and trading assets, both physical and digital, often involve complex processes and barriers such as high entry costs, lack of liquidity, and limited accessibility. This restricts many individuals from participating in investment opportunities and hinders the efficient transfer of ownership.
Abstract
Explore the tokenization of physical and digital assets on the Open Network for Digital Commerce (ONDC) to democratize ownership and enhance liquidity. By leveraging blockchain technology, the project aims to tokenize assets, allowing them to be represented as digital tokens. This enables fractional ownership, making it accessible to a broader range of investors. The goal is to create a decentralized marketplace on the ONDC where users can trade fractionalized assets easily.
Outcome
The project’s outcome is the establishment of a tokenization framework on the ONDC, enabling fractional ownership and trading of both physical and digital assets. Users will have the opportunity to invest in high-value assets with lower entry costs, while asset owners can benefit from increased liquidity and a broader pool of potential investors. The tokenization of assets will contribute to a more inclusive and efficient investment ecosystem on the ONDC, fostering financial democratization and innovation in the digital commerce space.
Reference
Token represents the right to do some operations in software. In blockchain, there are two types of tokens: utility token and security token. They endow the items of token more value in blockchain world. In order to achieve asset tokenization, we propose a new kind of token in this paper, the asset-backed token, which is used for the proposed blockchain based Open Asset Protocol (OAP). Using OAP, we show to how to convert both of the real and virtual objects to asset-backed tokens on blockchain. Then we discussed a new method for data utilization and privacy-preserving based on OAP and compare with our previous scheme, the Secure Multi-Party Computation (SMPC). Additionally, we introduce the Policy-Backed Token(PBT), which is an instance implementing OAP in insurance industry. We have applied PBT in the airline travel insurance product E-life of an insurance company.
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